JV will expand Juhayna's product portfolio to include cheese, butter and infant formula; will be 51% owned by Juhayna and will be managed by Arla
(Cairo, Egypt) -- Juhayna Food Industries (JUFO.CA on the Egyptian Exchange), a leading Egyptian dairy, yogurt and juice manufacturer, and European dairy cooperative Arla Foods will form a new joint venture to produce and distribute nationwide a range of products including cheese, butter and infant formula, among other potential products.
The joint venture will also explore the expansion opportunities in other Middle East and African markets. The joint venture will produce Arla-branded products as well as engage in the development of new products and SKUs. Arla has decades of experience operating in the Middle East.
"A joint venture with an international player of Arla's quality gives Juhayna the ability to diversify its product range and geographical footprint at a very rapid pace," said Juhayna Chairman Safwan Thabet. "The combination of Arla's well-recognized brands and Juhayna's distribution network and regional know-how will allow the new JV to target domestic and export markets."
"This partnership is a very good match for both parties," said Rasmus Malmbak Kjeldsen, Arla's senior vice president of the Middle East & Africa. "Juhayna has a nationwide distribution network, and we do not compete in the same product categories. Together, we can build and grow a broader product portfolio, creative value for both of our shareholders. Arla's business today is merely scraping the surface; in partnership with Juhayna, we will be able to drastically expand our distribution to reach millions of new consumers."
The new company, to be named ArJu Food Industries, will target an October 2015 start of sales operations and will aim to begin production in Egypt as rapidly as possible.
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ABOUT ARLA AND JUHAYNA
You can read more about Juhayna Food Industries at www.juhayna.com
You can read more about Arla Foods at www.arla.com
© Press Release 2015
